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Japan - In-depth PESTLE insights


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Japan - In-depth PESTLE insights

Summary

This PESTLE country analysis report on Japan provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis.

Synopsis

  • Understand the political system in Japan through analysis of key figures in the country and governance indicators.
  • Understand the economic situation in Japan through a balanced assessment of core macroeconomic issues.
  • Understand customer demographics in Japan through analysis of income distribution and the rural-urban split, as well as healthcare and education.
  • Understand the technological landscape in Japan through analysis of relevant laws and policies, as well as patents data.
Scope
  • What is the outlook in Japan in terms of political stability, policies towards business, and the popularity of the government?
  • How does Japan perform in terms of GDP growth, its fiscal situation, international investment position, monetary situation, and employment?
  • How does Japan perform in terms of healthcare, income distribution, and education?
  • How does Japan perform in terms of technology-intensive sectors like IT, life sciences, and R&D expenditure trends?
Reasons to buy
  • The political landscape section discusses the evolution of the political scenario in Japan, as well as the country's economic, social, foreign, and defense policies. The section also discusses the country's performance according to World Bank Governance Indicators.
  • The economic landscape section outlines the evolution of Japan's economy, as well as the country's performance in terms of GDP growth, composition by sector (agriculture, industry, and services), fiscal situation, international investment position, monetary situation, credit disbursement, banking sector, and employment.
  • The social landscape section analyzes the government's social welfare policies, as well as the country's performance in terms of healthcare, income distribution, and education.


Overview 2
Catalyst 2
Summary 2
Key findings 2
PESTLE highlights 4
Key fundamentals 6
Key Facts and Geographic Location 15
Key facts 15
Geographic location 16
PESTLE Analysis 17
Summary 17
Political analysis 18
Overview 18
Current strengths 18
Current challenges 19
Future prospects 19
Future risks 20
Economic analysis 22
Overview 22
Current strengths 22
Current challenges 24
Future prospects 32
Future risks 35
Social analysis 38
Overview 38
Current strengths 38
Current challenges 39
Future prospects 42
Future risks 44
Technological analysis 46
Overview 46
Current strengths 46
Current challenges 49
Future prospects 50
Future risks 51
Legal analysis 53
Overview 53
Current strengths 53
Current challenges 54
Future prospects 54
Future risks 56
Environmental analysis 57
Overview 57
Current strengths 57
Current challenges 58
Future prospects 60
Future risks 61
Political Landscape 63
Summary 63
Evolution 63
Pre-1945 63
1945-93 64
1993-2016 64
Structure and policies 65
Key political figures 65
Structure of government 66
Structure of legislature 67
Key policies 68
Performance 69
Governance indicators 69
Outlook 70
Economic Landscape 71
Summary 71
Evolution 71
Pre-1950 71
1950-90 71
1990-2016 72
Structure and policies 73
Financial system 73
Stock markets 74
Insurance 74
Performance 74
GDP and growth rate 74
Fiscal situation 79
International investment position 80
Monetary situation 80
Key monetary indicators 81
Banking sector 81
Unemployment 81
Outlook 82
Social Landscape 83
Summary 83
Evolution 83
Structure and policies 83
Demographic composition 83
Education 84
Healthcare 85
Social welfare 85
Performance 85
Healthcare 85
Education 86
Outlook 86
Technological Landscape 87
Summary 87
Evolution 87
Structure and policies 87
Intellectual property 87
Performance 88
Opportunity sectors 88
Outlook 89
Legal Landscape 90
Summary 90
Evolution 90
Structure and policies 90
Judicial system 90
Performance 92
Effectiveness of the legal system 92
Legal indicators 92
Outlook 92
Environmental Landscape 93
Summary 93
Evolution 93
Structure and policies 93
Environmental regulations 93
Environmental actions 94
Performance 94
Environmental impact 94
Outlook 95
Appendix 96
Ask the analyst 97
Disclaimer 97
List of Tables
Table 1: Japan - key fundamentals 6
Table 2: Japan - key facts 15
Table 3: Analysis of Japan’s political landscape 18
Table 4: Analysis of Japan’s economic landscape 22
Table 5: Average Monthly Total Cash Earnings Per Regular Employee (In thousands of yen) 30
Table 6: Japanese Government Bonds held by the Bank of Japan As of September 2017, 2017 (in 100 million yen) 36
Table 7: Analysis of Japan’s social landscape 38
Table 8: Analysis of Japan’s technological landscape 46
Table 9: Analysis of Japan’s legal landscape 53
Table 10: Analysis of Japan’s environmental landscape 57
Table 11: Mid-year population by age (as % of Population), 2016 84
Table 12: Patents received from the US Patent and Trademark Office, 2010-15 88
List of Figures
Figure 1: Map of Japan 16
Figure 2: Business and consumer confidence Index, Jan-05 to Jun-17 23
Figure 3: Gross public debt in selected countries, 2015 25
Figure 4: General government balance - 2015 26
Figure 5: Widening gap between central government expenditure and tax revenue, 2008-16 27
Figure 6: Elder farm workforce population - Rice farmers age distribution in 2010 28
Figure 7: Farm household population, 2009-2015 29
Figure 8: Index Of Consumption Expenditure Level, 1995-2015 30
Figure 9: Labour productivity growth (output per hour of work), 1985-2000, 2000-2007, 2007-2015 31
Figure 10: Firm productivity - Value added per person employed in 2013 32
Figure 11: Exports of goods and services (% of GDP), 2000-2016 33
Figure 12: Yearly change in exports and exports performance index, 2006-2016 34
Figure 13: Corporate profits rising while exchange rate depreciating, Q12012 - Q42016 35
Figure 14: Inflationary trend in Japan, 2000-2016 36
Figure 15: Self-employed with employees (as a share of employed persons) in 2015 37
Figure 16: Hospital Beds per 1000 inhabitants - 2015 39
Figure 17: Age dependency ratio (% of working age population), 2000-2016 40
Figure 18: Elderly-related social spending, 2020-2060 41
Figure 19: Japan's well-being performance - 2016 42
Figure 20: Tertiary education (Age 25-34) attainment in 2015 and PISA result 2015 43
Figure 21: Trends in real household income by income groups, 2007-11 44
Figure 22: Gini coefficient, 2007, 2010, 2015 45
Figure 23: Relative poverty rate in 2014 or latest year available 45
Figure 24: Researchers per thousand total employment - 2015 47
Figure 25: High-technology exports (% of manufactured exports) for selected OECD countries - 2016 47
Figure 26: R&D expenditure (as percentage of GDP) of OECD countries in 2015 48
Figure 27: Direct government funding of business R&D and tax incentives for R&D, 2014 or latest year 49
Figure 28: Business enterprise R-D expenditure by size, 2011-2015 50
Figure 29: Triadic patent families - 2014 51
Figure 30: Trademarks in knowledge-intensive services, selected OECD and non-OECD economies, 2010-12 52
Figure 31: Tax Wedge (% of labor cost) - 2016 55
Figure 32: Product market regulations, 2013 56
Figure 33: Electric Power Generated By New And Renewable Energy, 1990-2014 58
Figure 34: Environmentally related taxes, 2014 59
Figure 35: R&D budgets for energy and the environment for 2013 or latest 60
Figure 36: Countries' share in selected environmental technologies, 2008-10 61
Figure 37: CO2 prices implicit in diesel and petrol excise taxes after adjusting for externalities, 2013 1st quarter 62
Figure 38: Japan - key political events since independence 64
Figure 39: Japan - key political figures 66
Figure 40: Japan - structure of government 67
Figure 41: Japan - composition of lower house of the parliament 68
Figure 42: Japan’s historical GDP growth, 2005-2016 73
Figure 43: GDP and GDP growth rate in Japan, 2011-21f 75
Figure 44: GDP composition by sector in Japan, 2016 76
Figure 45: Agricultural output of Japan, 2011-16 77
Figure 46: Industrial output of Japan, 2011-16 78
Figure 47: Services output of Japan, 2011-16 79
Figure 48: Japan’s external trade , 2012-16 80
Figure 49: CPI and CPI-based inflation in Japan, 2011-21f 81
Figure 50: Unemployment in Japan, 2011-21f 82
Figure 51: Expenditure on healthcare in Japan, 2009-15 85
Figure 52: Expenditure on education in Japan, 2011-16 86
Figure 53: Internet users and penetration, 2012-16 89
Figure 54: Japan - judicial structure 91
Figure 55: Carbon dioxide emissions in Japan, 2008-15 95

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